BYBIT REVIEW 2021 – A COMPREHENSIVE GUIDE OF HOW IT WORKS
Choosing a cryptocurrency trading exchange can be difficult. Several factors must be considered, including the platform’s features, forecasting interface, exchanging pairs, fees, protection, and customer service. Bybit.com is among the world’s most prominent leveraged crypto exchanges. In this Bybit analysis, we intend to provide you with reliable and up-to-date information, so keep reading to learn everything you need to know about this cryptocurrency exchange and how it functions.
Table of Contents
OVERVIEW – QUICK FACTS ABOUT BYBIT
Bybit is a Singapore-based peer-to-peer cryptocurrency futures exchange. The platform is run by Bybit Fintech Limited, a corporation licensed in the British Virgin Islands. The exchange says on them about us section that they also have a group of specialists in distributed ledger technology and finance. For instance, their technical team includes members from Morgan Stanley, Tencent, and other companies. The main product available on the exchange is perpetual futures with a 100:1 leverage. This means they’re attempting to remain competitive with existing exchanges like Bit MEX and Deri bit, which offer similar non-expiry futures commodities.
Ben Zhou, the company’s owner and CEO, created Bybit in 2018. Ben has prior expertise in the forex industry, having successfully run an 8-year-old forex exchange. Bybit does have a long list of notable co-founders and other group members. This is most likely one of the primary reasons for the exchange’s meteoric success. Most traders from all over the globe can use the platform, and the forum has been translated into English, Chinese, Korean, Japanese, and Russian. However, there are several jurisdictions where Bybit does not work, such as the United States, Syria, and the Canadian province of Quebec.
The platform has a recorded uptime of 99.99 percent, rates are reasonable, and help appears to be doing a fantastic job of responding to customer concerns. Furthermore, at the moment, Bybit does not need a KYC to use its facilities. Seasoned traders are particularly enamoured with the platform’s lightning-fast performance. As per ByBit, they can manage 100,000 transactions per second. This has the benefit of ensuring that you risk as little cash as possible while trading, which can occur on overcrowded platforms. The platform is technologically advanced and equipped for the future.
WHY SHOULD YOU CHOOSE TO TRADE ON BYBIT?
BitMEX, until recently is among the most famous exchanges, has come under fire. Its members, in particular, were prosecuted for money laundering by US prosecutors in New York. As a result of these changes, traders are searching for a less costly and more technically sophisticated exchange that meets their requirements. Admittedly, BitMEX had a record of order book complications which could lead to unsuccessful trades and crucial errors that would eventually cost traders money. In addition to the most recent developments concerning BitMEX, there is little incentive for traders to remain on the platform provided that the BitMEX period has come to an end.
Today, new exchanges have arisen as alternatives, providing, among several other things, a much better layout and bybit leveraged trading experience. Bybit is the most likely of the latest exchanges to gain a significant market share in 2021. Why you may ask? Bybit’s features, on the other hand, can accommodate 100,000 TPS (transactions per second), which is much superior to the competition. Bybit has never encountered a device overload to date, which is quite encouraging. As a result, your credibility grows with uptime. This is one of the primary reasons why traders choose Bybit over BitMEX and other platforms. And this is also why you should also choose Bybit as your crypto exchange.
HOW TO REGISTER ON BYBIT AND START TRADING?
If you’ve wanted to give Bybit a try, you’ll need to build an account. Creating an account on ByBit is simple because ByBit does not require a lot of information from traders. You’ll note that several brokers and exchanges need you to validate certain data before you can begin trading. This is true, not just for conventionally controlled brokers, but also for a variety of new virtual currency brokers. This is not needed with ByBit. ByBit needs only an email account. If you sign up with your mobile, you must enter your state, contact information, and password. You can get started immediately after authorizing your profile via e-mail. It can give you a weird feeling, but a specialised digital currency broker does not need anything more from you.
After you register, Bybit will give you a security code, which you must enter to verify your email/phone number. This is only applicable for 5 minutes, so make sure you do it as soon as you create the account. You could be given a deposit bonus after you have verified your profile and signed back in. This is a perfect way to supplement your investment funds initially.
BUYING AND SELLING ON BYBIT
Bybit has specialized order features that is the pinnacle of bybit leveraged trading technologies. This is one of the greatest attributes of the crypto trading platform because it enables you to customise your entries while still managing risk. When you place an order, you will be presented with an order form. You can choose between different order types at the top of the form. You can change the leverage, cost, and quantities a little below the (in USD). On the Bybit system, there are three order forms to choose from, as detailed below:
- Market Order: A market order is one that is issued at the existing market price. It will position and conduct the transaction at the “bid” if it is a sell order, or at the “ask” if it is a buy order.
- Limit Order: This is the most common type of order and is usually the best way to exchange. The order is set at a level selected by the trader, which may be different from the original market value. This order is open and prepared to be “filled” by a purchaser or seller willing to meet the amount.
- Conditional Order: A conditional order is one that will perform as a market or cap order if a particular cost threshold is achieved. When you position the trade, you specify the bybit trigger price, as well as the route, quantity, and leverage. When technically meaningful thresholds are reached, these orders are usually used.
Stop losses are an integral aspect of leveraged investing that can help or hinder a brokerage account. There are many ways to configure a stop-loss on Bybit, and market participants should become familiar with these features to maximise their trading experience. As previously stated, the order would have a specific order life with the Limit order and the Conditional limit order. This is the amount of time the order will stay open until it has been “killed.” At Bybit, there seem to be three order life options:
- GTC (Good-Till-Cancelled): This is an order that will stay open until you actively delete it.
- Immediate-or-Cancel (IOC): This order is intended to be filled as soon as possible and at the best possible price. If some portion of the order appears unfilled, the rest of the order will be terminated. Partial order fulfilment is possible with this order sort.
- Ultimately, the Fill or Kill (FOK) order: Is intended to be filled completely and at the best possible price, or not at all. This is somewhat identical to the IOC order, with the exception that partial orders cannot be performed.
You may also specify how such instructions are carried out. For example, with your Limit and Conditional order, you can choose the “Post Only” selection. This ensures that whenever the order is fulfilled, it is performed as a “market maker,” and you will receive the maker commission. You also get the power to make your cap order a “Reduce Only” order. This generally implies that the order will only be executed if it reduces your position. If the demand caused the order place to be raised, it would be adjusted downwards or terminated altogether.
On the Conditional order, you get a comparable order function. This is known as “Close on Trigger,” and it can be combined with your conditional stop losses. It will guarantee that your stops reduce rather than increase your position. Their position bybit leverage calculator is another useful tool that you can look into. You may have seen similar resources on other exchanges, such as BitMEX. This allows you to measure your profit/loss and return on investment (ROI) on target amounts. It can also be used to calculate liquidation rates.
DEPOSITS AND WITHDRAWALS
ByBit is a cryptocurrency-only exchange. This ensures that you will be unable to finance your wallet in fiat currency. Although this may irritate others, you can easily switch your paper money into Bitcoin using a variety of exchanges such as Bitstamp or Kraken. To deposit cryptocurrency, you must first create a digital wallet and then authorize a transfer into the wallet. You could do this by going to your header’s “Assets” portion. This will show your wallet holdings, where you can select “deposit” to pull up the BTC / ETH address. You can begin the transaction after you have the address. It will not be immediate since the transaction must also be propagated across the network and verified by the miner.
Withdrawals are quite simple as well. You will press the withdrawal key on the relevant asset. It will request your wallet address as well as confirmation of the payment via 2FA. You would also be informed of the miner fee that will be charged on the transfer. Bybit processes withdrawals three times a day, at 0800, 1600, and 2400. (all in UTC). Withdrawal restrictions are imposed on the profiles, but they are not too stringent. The following are the minimum and maximum values:
- 002BTC / 10BTC Bitcoin
- 02ETH / 200ETH Ethereum
- 20XRP / 100,000XRP Ripple
- 2 EOS / 10,000 EOS
Bybit also has regular reserve requirements from the platform to ensure that they still have resources available on their hot wallet. These are set to 100BTC and 10,000ETH respectively. If you exceed this cap, you must wait for Bybit to resupply it from their cold wallet.
BYBIT USER INTERFACE AND TRADING PLATFORMS
Among the most important items for a margin trader is an efficient trading platform with cutting-edge technology. This is particularly true when trading with a high level of leverage. The trading platform appears to be reasonably well-designed and user-friendly. You can switch between your wallets and the account manager at the top. You can also toggle between BTC and ETH financial markets. The chart and market depth are on the left side of the standardized interface (you can toggle between). The order book and the most recent trades are then shown in the centre. On the right, you’ll find order forms and also contract information.
Other relevant trading information can be found by scrolling down from the home page. This involves global market activity as well as your money. The fact that their design is flexible and scalable was something we just loved about it. You can remove some of the components, scale them, and transfer them around to the desired location.
Season traders will note that the charts are by Trading View, which is known for producing seamless, insightful, and clear charts. Traders would be enabled to use advanced trading software and indicators to fine-tune their trading edge to maximise profits while minimising risk. Trading View charts provide a variety of time frames and resources for drawing trend lines, adding indicators, and chart trends to accurately plan a trade. Bybit has a large number of chart indicators that can be applied to any chart, including Simple Moving Averages, Relative Strength Index (RSI), Ichimoku, Bollinger Bands, Average True Range, MACD, Volume, Stochastics, and several others.
Bybit offers the best mobile trading app for Android and iOS devices that are extremely powerful, simple to use, and sensitive. The mobile app contains all of the trading functionality, indicators, and resources found on the website. Market participants can place trades, track positions, and review balances rapidly and effortlessly.
MARKET DATA ANALYTICS
Another interesting feature we discovered was their market data section, especially their advanced data section. This included some very useful graphs and charts that might assist you with your trading. You can also access and import the data from some of these maps. It could be an image, a vector file, or a CSV file.
Here is a description of the data that you can download, as well as an explanation of what it means:
- Price Moving Averages: This includes the Bitcoin price as well as a variety of moving average metrics for various time frames.
- Monthly Price Range for the Month Looks at the price’s monthly ups and downs. It helps you to see the asset’s trading range.
- Rolling Volatility: This metric compares the realised volatility over the last 30 days to the duration average. The aim is to give traders an indication of how often the price fluctuated over a given period.
- BTC Daily Realised Volatility: The daily realised volatility reflects the actual fluctuation over time.
There are also plenty of other measures, indicators, and data points available in the tabs thanks to the Bybit engineering team. This includes details on the individual index price, financing information, and the insurance program.
BYBIT’S TRADING FEES
Bybit charges the same fees as BitMEX. Moreover, Bybit does have a very low withdrawal fee of 0.0005 BTC, which is significantly lower than the average on other platforms, which is about 0.0008 – 0.0009 BTC. This implies that the Bybit withdrawal price is 41% smaller than the typical Bitcoin trading fee. The most intriguing aspect of the fees is that if you use a maximum order, you can receive a refund instead of paying a charge. In other terms, Bybit compensates you for entering limit orders into the order book which is pretty impressive. Here is a list of all the trading fees:
- Market order fee (taker fee): 0.075%
- Limit order fee (maker fee): -0.025%
- Withdrawal fee: 0.0005 BTC
- Bybit funding rate: 0.02%/ -0.02%
The bybit contracts exchanged on Bybit are futures contracts, and there is a bybit funding rate in place to ensure that the futures price is very much like the market price. This fee is paid explicitly by purchaser and sellers, not by Bybit. If there are more sellers than buyers, the sellers will pay the 0.02 per cent funding cost to the buyers, and conversely. If the financing rate is favourable (0.02%), then buyers (longs) will pay sellers (shorts). If the bybit funding rate is unfavourable (-0.02%), the sellers (shorts) will pay the buyers (longs).
Every 8 hours, at 16:00 UTC, 00:00 UTC, and 08:00 UTC, the bybit funding rate will be paid. This bybit funding rate would only impact you if you are already in an open role at the moment of the funding rate. Market dynamics and inflation rates decide the funding cost. This implies that it is not set in stone and can change regularly. When you enable your trade, you would be allowed to see the bybit funding rate that will contribute to the role information.
Bybit does not reimburse you any fees for deposits or withdrawals. However, due to blockchain mining, you might be charged a miner or “network” fee when removing your coins. However, this is typically very small.
BYBIT’S PROMOTIONS, BONUSES AND REWARDS
Essentially, there are a variety of ways for new customers to win some free BTC to exchange with. For eg, if your first investment on the portal is greater than 0.05BTC, you will receive an additional $5. If it is more than 0.5BTC, they will give you $50. If you deposit more than 1BTC, you will receive an extra $20. You can also do easy tasks to gain a little extra BTC. For example, simply registering and joining their social networking sites will earn you $5. Simply use their Take Profit and Stop Loss orders to earn an additional $5. If you exchange for more than 10 days, you will receive an additional $5. Even completing a short customer survey will earn you $5.
Bybit’s referral or affiliate programme has been a major contributor to the company’s rapid growth. Essentially, you will receive a 30% commission on all trading fees generated by users who sign up via you. Besides, you can receive a 10% commission on sub-affiliates that register via your direct affiliates. If you have a contact who chose to sign up, keep in mind he/she uses your referral connection so you can get a percentage of his fees back. If you have a blog, a YouTube account, or other links, you can easily earn $10,000 per month by spreading your referral connection.
FUTURE OF BYBIT: WHAT TO EXPECT?
Without a question, Bybit is among the best bitcoin derivatives exchanges in the industry right now. The platform has also attempted to incorporate new features to appeal to increasingly sophisticated investors, whose demands are rising and adjusting to new circumstances. Although we were generally pleased with Bybit, there are a few items that we believe could be improved and should be mentioned.
For starters, and maybe most significantly, they have a small selection of cryptocurrency properties. Although they intend to launch more commodities in the upcoming years, you can presently only exchange four crypto assets. This will make it hard for them to remain competitive with the larger cryptocurrency exchanges that are emerging. After this, despite having some of the best futures tools in the market, they do not sell any option style contracts. As a result, they are unable to satisfy traders who wish to exchange these types of derivative instruments. Perhaps they will finally make this accessible.
To summarise our Bybit review, the platform is a dependable, safe, and efficient cryptocurrency exchange that is appropriate for both novice and seasoned traders looking to invest in virtual currencies with high margins. Bybit.com has effectively incorporated the strongest of cryptocurrencies and conventional financial markets with an exchange that is easy to use. ByBit is an excellent alternative for traders who are familiar with leveraged trading and want a cutting-edge derivative trading platform with cutting-edge technologies and instruments.
Bybit claims to be a stable leveraged trading platform with bank-like security controls and operating procedures in place to keep clients’ funds safe. According to our study, the platform has never been breached or manipulated. Offline cold wallet storage, multi-signature withdrawals, and two-factor authentication are only a few of the security measures in place.
In addition to the quarterly futures bybit contracts, Bybit is expanding its portfolio of sub-accounts. Sub-accounts on Bybit would enable both retail and institutional owners to build secondary accounts that are connected to the primary ones. These sub-accounts may be assigned to various traders and used for a variety of trading strategies. So, legally, you are allowed to have two accounts.
Bybit is fresh but a popular Bitcoin and altcoin futures exchange that provides leveraged trading in BTC/USD, ETH/USD, XRP/USD, and EOS/USD.
The top 5 bybit alternatives are PEMEX, PRIME XBT, BITMEX, FTX and DERIBIT.
Due to stringent laws that are beyond Bybit’s reach, traders from the United States (US) are not permitted to use Bybit. Residents would need to locate an appropriate exchange in the United States to trade cryptocurrency with leverage.